London-based AI startup ChatBlu has secured $500,000 in pre-seed funding to launch the world’s first autonomous inventory management agent for e-commerce retailers. The funding round, led by Matador Ventures Capital with backing from Google and Amazon Web Services angel investors, targets a $1.8 trillion annual problem plaguing online retailers globally.
Founded in April 2025 by 20-year-old entrepreneurs Kristian Lukauskis and Alexander Dillon, ChatBlu addresses one of e-commerce’s most persistent operational challenges: real-time, multi-platform inventory synchronization across Shopify, Amazon, Etsy, and WooCommerce.
Why This Matters Now
Inventory inefficiencies cost retailers $1.8 trillion annually through stockouts and overstocking, according to industry data. ChatBlu’s AI agent promises to boost conversion rates by up to 20 percent while significantly reducing operational costs through automated backend task execution.
The startup’s solution allows store owners to issue plain-language commands like ‘apply 20 percent discount to all winter jackets’ while the AI handles pricing, listing updates, and inventory syncing across all connected platforms in real time.
‘We believe inventory should be invisible,’ explains co-founder Lukauskis. ‘Our AI agent operates quietly in the background, removing one of the last human bottlenecks in online retail.’
Strategic Advantage Through Automation
ChatBlu eliminates manual inventory oversight by automating stock synchronization, price adjustments, and listing management across multiple platforms. This automation frees business owners to focus on growth strategies rather than operational bottlenecks.
The company emerged from the 2024-2025 cohort of Genoa Entrepreneurship School, a European accelerator with a 75 percent funding success rate. Industry leaders like Douglas Leone, Partner at Sequoia Capital, serve as mentors through the program, providing founders access to capital and networks without interrupting their education.
Technical leadership comes from CTO Sairam Vangapally, former Amazon and Shutterfly data engineer. The broader team includes professionals with experience at Apple, Meta, Adidas, and Xbox, bringing deep technical expertise to the platform’s development.
Market Impact and Expansion Strategy
ChatBlu plans its public launch for September 2025, initially targeting Anglo-Saxon markets before expanding into Hispanic regions by 2026. This phased approach allows the company to refine its product while capturing significant market share in established e-commerce regions.
The AI platform’s natural language interface represents a significant advancement in inventory management technology. Store owners can issue complex commands without technical expertise, democratizing advanced inventory control for businesses of all sizes.
According to co-founder Dillon, ‘E-commerce has evolved, but inventory management hasn’t kept up. ChatBlu is here to change that and set a new standard for how stores operate across platforms.’
What Business Leaders Should Know
ChatBlu’s solution addresses critical pain points that affect bottom-line performance for online retailers. The company’s focus on automated listing optimization through intelligent algorithms offers competitive advantages in crowded e-commerce markets.
Investor backing from established firms like Matador Ventures Capital, known for Y Combinator investments, signals strong market validation. Additional support from Google and Amazon Web Services angel investors provides strategic technology partnerships that could accelerate platform integration.
The startup’s educational foundation through Genoa Entrepreneurship School offers credibility and access to ongoing mentorship from industry veterans. This support network positions ChatBlu for sustainable growth beyond its initial funding round.
Risks and Competitive Landscape
While ChatBlu addresses a significant market need, the company faces competition from established inventory management solutions. Success will depend on execution speed and the AI agent’s ability to deliver promised conversion rate improvements.
The September 2025 launch timeline is aggressive for a startup founded in April 2025. However, the team’s experience at major technology companies provides technical expertise necessary for rapid product development.
Future Implications for E-Commerce
ChatBlu’s autonomous approach to inventory management signals a broader shift toward AI-driven operations in e-commerce. Retailers adopting early automation solutions may gain significant competitive advantages as the technology matures.
The startup’s natural language interface could set new standards for user experience in business software. This accessibility factor may accelerate adoption among smaller retailers who previously lacked resources for sophisticated inventory systems.
By solving fundamental operational challenges, ChatBlu positions itself as a catalyst for e-commerce transformation. The company’s success could influence how retailers approach multi-platform operations and inventory strategy.
Business leaders should monitor ChatBlu’s rollout closely, as the platform’s capabilities could reshape competitive dynamics in online retail. Early adoption of advanced inventory automation may become essential for maintaining market position.
What’s your take on AI automation in inventory management? Will this transformation boost efficiency or create new operational risks?
